I'm planning to acquire a small multifamily in Tacoma and curious as to the current vacancy rates and CAP rates. Anyone have some data on this?
Hey @Bob Malecki - Answers to your questions will vary according to the neighborhood/submarket within Tacoma but the overall rental market is pretty strong. Most PM's I've spoken with report appropriately priced, clean and functional units attracting high renter interest and leasing quickly (~2 weeks). One well known PM that manages over 400 units in Pierce county stated their vacancy rate was <2% across their portfolio (this was during late summer). Cap rates, though these don't really matter as much for small-multifamily, tend to be in the 5.25-6.25% range depending on area and asset class.
From a narrative standpoint, one of my clients had over 40 inquiries within the first week on his 1BR/1BA unit in Central Tacoma and another had a tenant lined up to move into their 4BR/2BA SFR the day after the transaction closed.
Thanks @Aaron Nelson I appreciate the feedback/info
I don't have data but I can provide the anecdotal evidence that my property out in Puyallup (not far from Tacoma) had huge interest with many applications submitted prior to viewings. Lease up too only a few days on a <600 sq ft 1/1 which you are probably well aware as being typically more difficult. My Tacoma duplex has not had a tenant turn in almost 5 years
Best of luck @Bob Malecki for your next Tacoma deal. The Tacoma market is very strong and you will have tenants lined up for any average to decent property. Properties also appreciate quite a lot in Tacoma (more than some neighborhood in Seattle, which is crazy I know). Cap rate wise, it depends on the sub-market and where exactly in Tacoma, but between 5% and 6.5% is typical.
Best of luck and let me know if you got questions!
Goodluck ! Multifamily tougher to sell. The rental market with CoV is dismal. I mean you may get it rented but you get they don't have to pay you anything besides the deposit so that says you better be paying with all cash to absorb the loss. CoV may be gone next year. It may be around for years. We do know Inslee is in office for 4 more years. Why anyone would want a REI in his tenure is beyond me. I cannot unload my properties fast enough. Sold all I could this year. Wil be back at it next year.